Short-term business loans deliver quick cash flow for immediate needs, with repayment terms of 24 months or less [3][5][10]. Unlike SBA-guaranteed loans, which the SBA backs through partner lenders to reduce lender risk and lower down payments [1], short-term products are built for speed. OnDeck, for example, offers term loans from $5,000 to $400,000 with repayment terms up to 24 months and same-day funding [3]. National Funding provides loans from $5,000 to $500,000 with terms of 4–24 months and funding as fast as one business day [2].
The tradeoff is cost. According to Bankrate, short-term loans carry higher interest rates than longer-term financing because lenders compress repayment into a tight window and accept more risk [2]. These products suit businesses covering payroll gaps, seasonal inventory, or unexpected repairs rather than multi-year expansion. The SBA notes its loans serve longer-term fixed assets and operating capital, making them a different tool entirely [1]. Understanding this distinction prevents the common mistake of using expensive short-term capital for projects that warrant 5-year financing.